The Central Board of Indirect Taxes and Customs (CBIC) has constituted a high-level Working Group to examine the feasibility of introducing a centralized administration mechanism for taxpayers having multiple GST registrations (GSTINs) under the same Permanent Account Number (PAN).
Objective Behind the Proposal
The proposed reform seeks to address long-standing compliance and administrative challenges faced by businesses operating across multiple States and Union Territories under different Central GST jurisdictions. At present, companies with multiple GST registrations under the same PAN often have to interact with different Central tax authorities for audits, investigations, assessments, refunds, and other compliance-related matters.
Recognizing these practical difficulties, CBIC has initiated a comprehensive examination of a centralized administration model that could streamline tax administration for such taxpayers while improving operational efficiency for both taxpayers and the tax department.
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High-Level Working Group Constituted
The Working Group will be headed by Shri Vinayak Chandra Gupta, Chief Commissioner, Lucknow CGST & Central Excise Zone, and comprises senior officers from the GST Policy Wing, Directorate General of Human Resource Development (DGHRD), Directorate General of Audit, Directorate General of Performance Management (DGPM), field formations, and a representative nominated by the Goods and Services Tax Network (GSTN).
The broad-based composition reflects CBIC’s intention to examine the proposal from policy, administrative, technological, and operational perspectives before recommending any structural reforms.
Key Issues Before the Working Group
The Office Memorandum assigns an extensive mandate to the Working Group to evaluate every aspect of centralized taxpayer administration.
One of its primary responsibilities is to identify the practical difficulties arising from multiple tax administrations for taxpayers possessing the same PAN but multiple GST registrations spread across different Central tax jurisdictions.
The Group has also been tasked with studying the centralized registration and Large Taxpayer Unit (LTU) framework that existed under the erstwhile Central Excise and Service Tax regime. Additionally, it will examine international best practices relating to centralized tax administration and assess whether a similar framework can be adopted under the GST regime.
Optional or Mandatory?
An important policy question before the Working Group is whether centralized administration should be introduced as an optional facility available to eligible taxpayers or whether it should become mandatory for all qualifying entities.
The recommendation on this aspect is expected to significantly influence the future design of the proposed framework, balancing taxpayer convenience with administrative efficiency.
Determining the Scope of Coverage
The Working Group has also been directed to determine the categories of taxpayers that should fall within the proposed centralized administration mechanism.
Among the options under consideration are:
- Taxpayers having multiple GSTINs under the same PAN where all registrations are under Central Tax jurisdictions.
- Taxpayers having GST registrations split between Central and State tax jurisdictions, while limiting centralized administration only to those GSTINs falling under Central jurisdiction.
These recommendations will help define the operational boundaries of the proposed system and ensure that State-administered GST registrations remain outside the proposal wherever necessary.
Criteria for Selecting the Jurisdiction
Another significant responsibility assigned to the Group is recommending principles for determining which Central Tax authority should administer a taxpayer having multiple GST registrations.
The Office Memorandum suggests several possible criteria, including:
- Largest annual turnover.
- Location of the head office.
- Any other objective criterion.
While making these recommendations, the Group has been asked to ensure balanced workload distribution among field formations, administrative efficiency, taxpayer convenience, and optimal utilization of available manpower.
Legal, Administrative and Technological Changes
Beyond policy recommendations, the Working Group has also been directed to identify the legal amendments, administrative restructuring, and system-level technological changes necessary for implementing centralized administration.
This includes assessing implications for CBIC’s organizational structure, manpower deployment, IT infrastructure, and procedural changes required for smooth implementation. The Group may also recommend any additional measures that may be considered necessary to operationalize the new framework effectively.
Power to Consult Experts
Recognizing the complexity of the exercise, CBIC has authorized the Working Group to co-opt any officer or expert whenever considered necessary. The Chairman of the Group has also been given the flexibility to determine the timing and mode of meetings.
Report to be Submitted Within 30 Days
CBIC has prescribed an ambitious timeline for the exercise. The Working Group has been directed to submit its report within 30 days from the issuance of the Office Memorandum. The report must include a detailed implementation roadmap along with draft proposals for consideration by the Board.
Potential Impact on GST Administration
If implemented, centralized administration could represent one of the most significant administrative reforms since the introduction of GST. Large business groups operating across multiple States frequently interact with several tax authorities for identical compliance issues, resulting in duplication of proceedings, increased compliance costs, and administrative inefficiencies.
A centralized model could substantially reduce multiple departmental interfaces, improve consistency in tax administration, simplify audits and assessments, facilitate faster dispute resolution, and provide a more unified compliance experience for large taxpayers. At the same time, the Working Group’s recommendations will need to carefully balance taxpayer convenience with jurisdictional coordination and effective tax administration.
The constitution of this Working Group signals CBIC’s intent to evaluate a structural reform that could reshape the administration of large multi-State businesses under the GST regime, while reinforcing the government’s broader objective of promoting ease of doing business through administrative simplification.
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